I think almost every person on the planet has been touched in one way or another by the terrible ups and downs of the financial markets. There is a general feeling of fear and frustration with a situation over which we have no control. We have had enough time to get over the shock, and cool heads are starting to make plans to benefit from the current crises.
Benefit? My nest egg is dwindling away, each news story is worst than the last, how on earth can I benefit you might ask.
Let's look at how the financial and credit crises is affecting the real estate market.
1. Buyers are feeling fear and are reluctant to commit to a purchase.
2. Credit is tight and only buyers with great credit are getting loans.
3. Down payment requirements are more stringent so buyers are having to put off a purchase because they need time to "save" the down payment.
Sellers fall into two catagories - those who want to sell, and those who need to sell. The bargain hunter knows the pool of buyers is smaller right now and seeks properties owned by folks who need to sell. These can be people who have been transferred or relocated for some reason - maintaining two houses is a burden. Another group are people affected by the tight credit market who need to pay school tuition, or even buy a car, and they are willing to deal on a lot or tract of land to raise the cash they need. Properties in estates and those owned by someone who is elderly often can be a bargain.
You will need the services of a good realtor who is willing to invest the time and do the research to help you find these properties with the potential to be a great deal. Difficult times are the best times to pick up properties that will appreciate and grow your long term wealth.
No comments:
Post a Comment